And Mr Joyce was defiant in the face of the headline loss, deflecting blame for the airline’s troubles to external forces like fuel costs and promising to deliver a profit next time. “There’s no doubt that today’s numbers are confronting,” he said.

Mr Joyce made it clear the result had not triggered him to rethink his future at the airline.

“There’s always people out there asking for my head,” Mr Joyce said.

He announced the airline’s dire international arm bled $497 million and would be split off, in a move that better prepares it for foreign investment. This result was more than double the previous year’s loss.

The bulk of the overall statutory loss was due to a monster $2.6 billion being written off the value of its international fleet.

Mr Joyce said a key reason for the size of this number was the value of the dollar — when the aircraft were purchased it was as low as 57c compared to today’s 93c.

“We believe the worst is over for us now,” Mr Joyce said.

“The management, the CEO, the board are fully behind that ... and we are making progress in that direction,” he said.

‘‘We really want to see Qantas survive for at least the next 90 years.”

Alan Joyce: people are always after my head1:23

Qantas still held $3 billion in cash and after the writedown delivered an underlying loss of $646 million, which was about $100 million better than the market expected.

Mr Joyce ruled out selling the lucrative frequent flyer program, the bright spot on the balance sheet which delivered a 10 per cent improved profit of $286 million.

“That loyalty program has doubled in size over the past five years. It’s been huge growth from five million to 10 million members,” Mr Joyce said.

The airline’s domestic arm made a $30 million profit, down from a $365 million profit in 2013.

Mr Joyce signalled a cooling in the capacity war, which meant seats on planes were selling at a loss because there was more supply in the market than demand.

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But Qantas, he said, were “still protecting our domestic position” and would battle hard to build the premium domestic business.

“There is a clear and significant easing of both international and domestic capacity growth, which will stabilise the revenue environment,” Mr Joyce said.

He ruled out any further job losses and said half of the 5000 jobs already earmarked to go had been cut.

Deputy Prime Minister Warren Truss backed the airline’s direction.

“While the numbers are dramatic, the reality is Qantas is a strong company and seems to be positioning itself for a better future,” Mr Truss said.

The result promoted calls for further relaxation of the Qantas Sale Act to allow for increased foreign investment in the airline.

Businessmen Ron Walker and Jeff Kennett urged the federal government to remove the 49 per cent cap on foreign ownership.

Former Victorian premier Mr Kennett said foreign ownership of the international arms should be considered because Middle Eastern airlines were being funded by their governments. “I would like to see Qantas remain flying,” he said.

“If they have to make it compete on a level playing field with its competitors, well so be it.”

The Qantas Sale Act, created in 1992 to prepare the airline for privatisation, was updated last month to allow a foreign airline to own 49 per cent of Qantas, up from 35 per cent.

The Labor Party blocked full foreign ownership.

Qantas last paid a dividend to shareholders in 2009, the year Mr Joyce took on the job.

Jennifer Sexton

QANTAS boss Alan Joyce copped a pay cut and did not receive a bonus as he wrote the national carrier into the corporate history books with its biggest loss.

But, despite the sea of red ink, Mr Joyce still managed to take home $2 million in the year to June and insisted, even after delivering five years of dire results, that “there’s no better job” to have.

He accepted no personal responsibility for the woeful state of Qantas accounts as he announced the $2.8 billion loss.

Mr Joyce missed out on two big bonus payments — a $775,000 cash bonus and a $388,000 deferred award bonus — and $53,000 was sliced off his base pay.

In all it was a 40 per cent pay cut, or $1.2 million less than the previous year.

The bonuses were not paid after he implemented an executive-wide policy cancelling all incentive payments, regardless of whether corporate performance targets were met.

Asked yesterday whether it was time for chairman Leigh Clifford and himself to consider their futures, Mr Joyce said: “Nearly every carrier operating into Australia is saying it’s losing money. That’s nothing to do with Leigh or me.”

Australian Services Union assistant national secretary Linda White disagreed: “The board and CEO are the architects of this loss.”

She said Mr Joyce had failed to reveal the growth plan for the airline. Instead, through splitting the international and domestic arms of the business, he had created a “a corporate shell game’’, adding: “It’s not a game changer that’s going to bring in revenue.’’

Mr Joyce’s turnaround strategy involves cutting $2 billion in costs and 5000 staff and — if he pulls it off — he expects to deliver a profit this financial year.